Project Overview
Client
Major Australian Banks, Non-Bank Lenders and Private Investors (confidential)
Property Type
Office, Retail and Industrial Assets - Sydney Metropolitan Area
Reason for Service
First mortgage valuation for lending purposes
Preston Rowe Paterson was appointed to to provide multiple independent market valuations for first mortgage lending purposes across a diverse range of commercial assets for Major Australian Banks, Non-Bank Lenders and Private Investors (confidential).
The engagements required the provision of independent market valuations for secured lending purposes, including analysis of highest and best use, market liquidity, risk factors and asset specific attributes.
The valuations were undertaken to support new lending, refinancing and credit risk assessment, with reports prepared in accordance with lender valuation instructions and professional standards.
Summary of Scope of Services
Across the portfolio, Preston Rowe Paterson provided:
- Market value assessments on an “as is” basis, subject to vacant possession or existing leases
- Analysis of highest and best use under current planning controls
- Assessment of occupational risk, lease structure and tenant covenant (where applicable)
- Review of title, easements, encumbrances and ownership risk (including company title considerations)
- Market rental assessments supported by local comparable evidence
- Sales evidence analysis and market commentary relevant to each asset class and location
- Risk analysis covering asset quality, location, planning, environmental and market factors
Overview of Assets:
The instructions covered a diverse mix of small commercial assets, including:
- CBD commercial office space within a heritage-listed building, held under Company Title
- Strata retail premises located within mixed-use residential developments in inner Sydney
- Strata industrial units with warehouse and mezzanine office components
- Freestanding suburban industrial property improved with a single-tenant gym facility
Assets ranged in size from sub 50 square metre retail shops through to large format industrial buildings across key Sydney metropolitan locations, including the CBD, Eastern Suburbs, Inner West and established industrial precincts, with ownership structures comprising freehold, strata and company title.
Valuation Methodologies
Depending on the asset and occupational profile, valuations were undertaken using:
- Direct Comparison – primary method for strata retail and strata industrial units
- Capitalisation of Net Income – applied to leased retail and industrial assets
- Cross-checks against market rentals and comparable yields to test reasonableness
All approaches were supported by recent local sales and leasing evidence and adjusted for factors including size, condition, lease terms, title structure and market depth.
This engagement demonstrates Preston Rowe Paterson’s expertise in:
- Providing valuation advice across a diverse range of commercial assets;
- Interpreting market evidence in low value and tightly held asset classes;
- Assessing ownership risk including strata, freehold and company title structures;
- Supporting institutional lending decisions through clear and reliable reporting; and
- Delivering consistent, high quality valuation outcomes across varied asset types.
Through careful calibration of market evidence and conservative income assumptions, Preston Rowe Paterson delivered a robust, lender ready valuation that appropriately balanced risk, market reality and long term utility.
Approximately
181sqm
net lettable area across five interrelated office suites
A total of
6.5%
capitalisation rate applied in income assessment
We Deal with the Mainstream & Specialise in the Complex for all asset classes
